MS needs to cut the price of the Xbox 360!

SamuelRSmith

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SamuelRSmith on 28 January 2012

I'd just like to point out that $399 in 2005 is around $460, now. Stated differently, the top line model is (in cash terms) has stayed the same price since launch. Obviously, the top-line model now comes with a hell of a lot more additional hardware, but it's something interesting to think about.

Put another way, if inflation was under control, the Kinect Star Wars 360s with 250gb would cost $400 today. The 360s 4gb would cost $175 (about $25 savings).

Just did a quick check... the original Xbox launched at around $380 2011 dollars.

Microsoft consoles seem to stay at the $380-$400 2011 dollars mark, or at least the top-of-the-line model.

Take from this post what you will.

-----

My prediction is that the new Xbox will launch between $400-$450. The price of the 360 will be dependant on whether the new Xbox has a low end SKU. The 360 will be flattened into a one SKU lineup, no matter what.

Option 1:

360 - $199
neXbox low - $350-$400
neXbox high - $400-$450

Option 2:

360 - $250
neXbox - $400

Yeah, I know this post is all disjointed.

homer

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homer on 28 January 2012

They will by the end of the year. Calling it now. Or they could do what they did last year and just have really awesome bundles and deals at christmas time.

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adsl on 28 January 2012

This is a interesting problem... It's time to earn as much money as possible with the 360, in order to invents it in the NextBox. But will MS earn more money by cutting 360's prince right now?

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chapset on 28 January 2012

imo they should wait for the 720 before cutting price, they did well last year without one and I don't think this year Sony will cut their prices unless Microsoft does,

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kain_kusanagi on 28 January 2012

greenmedic88 said:

kain_kusanagi said:
The next Xbox isn't hitting until at the earliest fall 2013. That's just a little less than two years. We will probably see a $50-$100 price drop for the 2012 holiday season. It's possible that we might see a price drop announced at E3 along with a new bundle or something, but MS has had incredible sales and Halo 4 coming out this year. Halo is like crack and the Xbox 360 is the pipe. Every time MS releases a new Halo game with a number in it's title their console gets a big boost. People always think everyone who's going to buy Halo already has an Xbox, but every time there is a boost. With Halo 4 and a possible price cut for the holidays and along with bundles, we could see the Xbox 360 have another record year and blow everyone away again.

You do realize how much the software market has shifted since 2007 right? Halo is no longer the premier hardware selling game franchise. It's been Call of Duty since Modern Warfare 2.

And the number 4 will have nothing to do with that changing . Halo Wars had no marketing appeal to FPS gamers. ODST; arguably a retail expansion pack (was originally being developed as such after all). Reach, was by many measures a better game than Halo 3. CE anniversary; an HD re-release.

The only yardstick to compare sales differences for the "number theory" would be between Halo 2 and Halo 3, which weren't even on the same console. Halo 3 was released within the first 2 years of the Xbox 360 life cycle when it was still in the initial stages of building install base. Halo 4 will be released near the end. While I'm sure it will be a fantastic game, Bungie or no, the idea that it will sell a million consoles for being Halo 4 to people who no longer own an Xbox 360 is ridiculous.

While I'm sure the immediate response will be to claim it doesn't matter because CoD isn't a console exclusive and Halo is, the reality is that Halo 4 will likely be directly responsible for the sale of consoles numbering in the mid to low hundreds of thousands at best.

Any major shift in sales will coincide with price drops, deals and bundles that are likely to happen in the holiday 2012 season more than the release of Halo 4.

Halo and COD can coexist in the realm of mass appeal. I never said it would sell millions of consoles. I said it would boost sales.

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Kai Master on 28 January 2012

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greenmedic88 on 28 January 2012

Kai Master said:
No need to hurry, the 360 once again peaked in sales, why would they cut the price ? If sales still peak again in 2012 thanks to a price cut maybe they will postpone it in 2014.

Going off of what happened last year, sales of the 360 will likely stagnate and continue to drop YoY until the '12 holiday season.

'11 sales would seem to indicate that the 360/Kinect has replaced the Wii as the holiday family console.

If any price drops were to be made in '12, it seems most likely that they would coincide with the start of the holiday season. Same could have been said for the '11 holiday season, but instead there were the expected Black Friday sales and then $50-100 gift card offers running from post Black Friday well into January '12.

It's also possible MS ends up doing the same thing in '12, which would make retailers happy, assuming MS is providing some sort of cash or discount reimbursement for the gift cards being issued.

The only other permanent discount scenario I could potentially see would be at E3 '12 in conjunction with their biggest announcement.

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Millenium on 28 January 2012

They don't really need to (Why would you want to throw away a hundreds of million bucks per year? It's not greed to not cut price, it's just good business)

Having said that, I do think they'll do a $50 pricecut on the SKU's and Kinect around E3.

Oh and COD doesn't really move more 360 consoles than Halo does, keep dreaming.